📰 [NEWS] China Debates Rules for $59B in Seized Crypto While Maintaining Trading Ban
China is crafting regulations for billions in confiscated cryptocurrencies while still prohibiting trading, creating a striking contradiction in the world's second-largest economy.
Important details:
• Blockchain security firm SAFEIS reports crypto-related crimes in China reached 430.7 billion yuan ($59B) in 2023, spanning fraud, money laundering, and illegal gambling
• Local governments are selling seized crypto through unregulated private firms, with penalty and confiscation income hitting 378 billion yuan in 2023 (up 65% over five years)
• China now holds approximately 15,000 Bitcoin ($1.4B), making them the 14th largest BTC holder globally despite their official ban
Potential impacts:
👉 Market vulnerability: Risk of price volatility if Chinese authorities decide to liquidate significant portions of their seized Bitcoin
👉 Policy evolution: Discussions about creating a sovereign crypto fund in Hong Kong (where trading is permitted) signal a potential shift toward a more pragmatic approach
👉 Global comparison: China's conflicting stance contrasts sharply with countries like the US, Singapore, and the EU, which are developing supportive regulatory frameworks
#CryptoRegulation #ChinaBan #ChinaCrypto
